The Defense Credit Union Council (DCUC) urged the NCUA to pursue a wide-ranging modernization of its regulations, arguing that many existing requirements no longer reflect the realities facing today's credit unions.
In comments submitted as part of the NCUA's annual regulatory review, DCUC recommended that the agency focus on regulations that are proportional to a credit union's size and complexity, regularly update outdated thresholds and adopt more principles-based approaches that provide institutions greater flexibility.
Among the organization's priorities is continued support for statutory enhancements to the Central Liquidity Facility, including expanded borrowing authority and greater flexibility for corporate credit unions serving as agent members. DCUC also recommended raising the board-approval threshold for loans to officials from $20,000 to at least $75,000, noting inflation and changing lending practices have reduced the effectiveness of the current limit.
The trade group called on the NCUA to modernize fidelity bond requirements, extend compliance deadlines related to insurance coverage changes and clarify that director education and governance training qualify as reimbursable expenses. It also reiterated support for the agency's proposal allowing federal credit unions to reimburse dependent care expenses incurred by volunteer officials.
DCUC additionally proposed expanding Payday Alternative Loan programs by increasing loan limits, extending repayment terms, allowing higher application fees and eliminating the one-month membership requirement for PALs I loans. The organization argued the changes would help credit unions better compete with payday lenders while expanding access to affordable short-term credit.
"These recommendations are designed to help credit unions better meet member needs while supporting the long-term strength of the credit union system," DCUC Chief Advocacy Officer Jason Stverak said.
READ MORE: DCUC's Letter to NCUA Officials.
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